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Thursday, September 10, 2009

A few steals this year

I was on the look-out for a boring business this March. That's how I found Today's Writing Products Ltd. Their main product is Today's pens. In this internet age, pens are highly unglamorous products. Back when I was still writing most of the time with a pen (and occasionally with a pencil), Today's and Reynolds were the big names.  It was a pure book value play trading well below book, when I looked at it in March 09.  I closed this fast trade in May for a 70% profit.

They say, lightning never strikes twice.  Fortunately, it did with GIPCL. I posted about it earlier in 2007.  It happened again in 2009, this time a 60% return in 4-5 months.  Same conditions held as in the 2007 posting, when I bought it.

Then there was Tata Steel - it was just there for the taking.  Even if the company performs as well as it did in 2003 without any contribution from Corus, it would have given a sweet dividend yield.  I booked (a little early, as is the case with almost every other investment) the gain at 50-60% gain in two months.  The 2% CCPS would have given a better return - my broker didn't have permission for trade in that instrument.

And Corporation Bank, one of the best capitalised and performing banks was beaten down so hard that it gave a good return as well.

There are two more that are still playing out.

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